By Wezzie Gausi:
The National Oil Company of Malawi (Nocma) has told members of the Parliamentary Committee on Budget and Finance that it owes fuel suppliers K67 billion.
According to Nocma, the impact of defaulting on the payment of fuel suppliers has led to suppliers only allowing loadings to take place upon receipt of remittance, in what is called creating headroom.
Addressing members of the committee, Nocma Chief Executive Officer Clement Kanyama said Nocma’s strategic fuel reserves had dwindled because, overall, the country’s consumption had been more than total receipts.
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He said due to the shortage of forex, Nocma was unable to settle open credit accounts, hence the board of directors resolved to extend contracts for suppliers to 2025.
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“As things stand, the 2024-25 fuel suppliers for the country are Addax from Switzerland, Hass Petroleum from Kenya, Camel Oil from Tanzania and Augusta from Switzerland.
“Nocma is also unable to cater for additional consumption from new infrastructure like construction of the railway line from Marka to Bangula due to the impact of defaulting on payments to fuel suppliers,” Kanyama said.
On his part, committee chairperson Gladys Ganda said what was happening at Nocma was concerning.
She said the country was in dire need of fuel.
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“We really need to know the truth about the fuel status in the country. Everyone can agree with me that fuel has gone scarce again.
“We, as a nation, really need to find tangible solutions to dealing with such issues,” Ganda said.
Meanwhile, Nocma has said stocks have continued to dwindle due to lower imports, which has resulted in them struggling to meet the national consumption.
